India Maharashtra Pune People's Money For People's Welfare (punediary.com)

People's Money For People's Welfare

With the information of the life Insurance Corporation of India on 1st September 1956, it can be said that utilization of people's money invested in Life Insurance for planned economic development of the country took roots. One of the objectives, of nationalization of the life insurance industry was channelising of its funds for the benefit of the community at large. In pursuance of this objective, LIC has, over the years, been investing a major part of its funds primarily in the socially oriented sector. As at 31st March, 2003, 87.22 % of its total investments were in the public sector, 0.82% were in the Co-operative Sector and 11.95 % in the Private Sector.

For The Welfare Of Society :

Keeping in mind the primary obligation of the Corporation to its policyholders, as enshrined in the objectives of nationalization of the Corporation are deployed to the best advantage of the policyholders as well as the community as a whole. While investing these monies which are held in trust, the Corporation has to keep in view the national priorities and obligation of reasonable returns. The total Funds, so invested for the benefit of the community at large has accumulated to Rs.272999.06 crore as at 31st March, 2003 after meeting the liabilities towards the claims, management and other expenses, registering an increase of Rs. 40102.01 crore during the year 2002-2003. The investment of the Corporation's funds is government by Section 27A of the Insurance Act, 1938, and subsequent guidelines / instruction issued thereunder by the Government of India from time to time. Not less than 50% of our accretions to the fund are invested in central Government Securities, State Government Securities, Government Guaranteed Marketable Securities, Loan in the Socially Oriented Sector for approved purposes such as Power (Electricity), Housing, Water Supply and Sewerage, Road Transport and Co-operative Industrial Estates. The total investment made by LIC in the socially Oriented Sector including investment in Central / State Government Securities and Government Guaranteed Marketable Securities up to 31st March, 2003 amounted to Rs. 21,3477 Crore.

Better Health, More Power And Houses To Masses:

The Corporation has been promoting Social Welfare through Socially Oriented investment. These investments are regulated by the Government from time to time to benefit the people at large by providing basic amenities like potable water, drainage, housing, electrification and transport.

Under the Corporation's scheme of providing financial assistance for piped water supply and drainage schemes, 2142 urban / local bodies in 23 states and the Union Territory of Chandigarh have benefited . In addition, 688 zilla Parishads in 9 States are also receiving financial assistance from the Corporation for rural piped water supply schemes. The investments in this sector up to 31st March, 2003 was Rs 440 Crore.

The Corporation also provides financial assistance to State Electrcity Boards / Power Corporations for power generation projects by way of loans/ subscription to their bonds. The investment of the Corporation in the power sector was Rs. 20613 Crore up to 31st March, 2003 thus reflecting Corporation as the largest single contributing factor in the progress of electrification schemes in the country.

Housing is one of the basic necessities of human being. Housing finance, therefore, occupies a prime place in Corporation's socio-purposive investments. Since inception, the Corporation has been providing finance for housing to individuals, Co-operative Housing Societies and private undertaking under its various mortgage housing scheme. with a view to solving the housing shortage in the country, the Corporation joined in a big way in the massive effort by providing financial assistance to state Government for social Housing Schemes for Economically weaker section, Low Income Groups, Middle Income Group, State Government employee and rural population. The Corporation has also been extending financial assistance to State Level Apex Co-operative Housing Finance Societies, the benefits of which are passed on to individuals through Primary Societies. Besides, the Corporation is providing bulk loan to Housing Finance Institutions like Housing Development Finance Corporation, Housing and Urban Development Corporation, National Housing Bank and State Police Housing Bank and State Policy Housing Corporations in few States. The total contribution of the Corporation up to 31st March, 2003 to Housing development activities by way of loan to State Governments, State-Level Apex Societies, HDFC, HUDCO, NHB, LICHFL etc. and loans under Mortgage Housing Schemes amounted to Rs. 20294 Crore.

The Corporation has been assisting development of road transport by providing financial assistance to state Road Transport Corporation for augmenting their fleet of buses. The total investment in this sector up to 31st March, 2003 was Rs. 1358 Crore.

In 1997-98, the scope of Socially Oriented Sector ahs also been widened to accommodate infrastructure projects pretaining to Ports, Railways (BOLT Projects), Roads, Highways and Airports. Further, it has also classified that the Corporation can make private sector investment in addition to public sector investment subject to availability of suitable schemes, which satisfy prudential norms.

Boosting Industrial Growth :

The Corporation helps boost the industrial growth in the country. It helps small scale and medium scale industries by granting loans for setting up co-operative Industrial Estates and an amount of Rs.45 Crore has so far been advanced to Co-operative Industrial Estates and Industrial Development Corporations. The Corporation's assistance to State Level Finance Corporations and All India Finance Corporations like IDBI, IFCI, ICICI etc. by way of subscription to bonds / debentures issued by such institutions, also indirectly helps development of small scale and medium scale industries. The corporation also make investment in the corporate sector in the form of long, medium and short-term loans to Companies/ Corporations. The total investment made by way of loan as at 31st March, 2003 was Rs. 2960 Crore and by way subscription to Shares / Debentures as at 31st March, 2003 was Rs. 56164 Crore. All these make a distinct contribution towards growth in industrialization and generation of skilled and unskilled employment opportunities in the country.

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